Bullish view
Buy the BTC/USD pair and set a take-profit at 72,000.
Add a stop-loss at 65,000.
Timeline: 1-2 days.
Bearish view
Sell the BTC/USD pair and set a take-profit at 65,000.
Add a stop-loss at 72,000.
Bitcoin price went parabolic, reaching its highest level since June 2nd this year, as borrowing costs dropped, and after President Donald Trump met several senior executives in the industry. The BTC/USD pair jumped to 69,340, up substantially from the year-to-date low of 57,000.
Bitcoin jumped as a risk-on sentiment spread in the financial market after a major intervention by Scott Bessent. This intervention in the bond market happened after long-term bond yields soared to the highest level in two decades. In the aftermath, the 30-year yield dropped to 5.19% from the year-to-date high of 5.33%.
Falling bond yields is usually a bullish thing for risky assets because it normally leads to a more risk-on sentiment. However, the risk is that Bessent’s intervention will likely have a short-term impact as we saw with his action to save the Japanese yen.
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Also, there are substantial risks that US bond yields will remain at an elevated level in the foreseeable future. For one, oil prices continue to rise amid the ongoing US-Iran stalemate, with Brent remaining above $90.
The BTC/USD pair also jumped after Trump met with some of the biggest players in the crypto industry, including leaders of companies like Robinhood, Coinbase, and Ripple Labs. They talked about the CLARITY Act, which has remained in a stalemate in the past few weeks. Polymarket data shows that many traders believe that the bill will not be signed into law this year.
Bitcoin also held steady as ETF inflows continued rising in the past few days. These funds have now added over $500 million in the past few days. This is a sign that investors expect the prices are continue rising in the near term.
BTC/USD Technical Analysis
The daily chart shows that the BTC/USD pair has remained in a narrow range in the past few days. It then made a strong bullish breakout, reaching its highest level since June.
Bitcoin has formed an inverted head-and-shoulders pattern, a bullish reversal sign in technical analysis. It has also moved above the 50-day moving average, while the two lines of the MACD indicator have moved above the zero line.
Therefore, the pair will likely continue rising as bulls target the next key resistance at 72,000. A drop below the key support level of 65,000 will invalidate the bullish outlook.
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